CHAPARRAL PINES COMMUNITY ASSOCIATION CONSOLIDATED ASSOCIATION RULES & ENFORCEMENT POLICY

CHAPARRAL PINES COMMUNITY ASSOCIATION CONSOLIDATED ASSOCIATION RULES & ENFORCEMENT POLICY 2/10/2014 3:21 PM

CHAPARRAL PINES COMMUNITY ASSOCIATION CONSOLIDATED ASSOCIATION RULES TABLE OF CONTENTS ARTICLE 1 PURPOSE, ORGANIZATION AND FINANCE... 4 1.1 Project Documents.... 4 1.2 Management.... 5 1.3 Finance.... 5 ARTICLE 2 ASSOCIATION PROPERTY GENERAL RULES... 6 2.1 Code of Conduct.... 6 2.2 Responsibility... 6 2.3 Notices and Advertisements... 6 ARTICLE 3 GENERAL RULES GOVERNING THE USE OF LIMITED ACCESS GATES... 7 3.1 Methods of Access... 7 ARTICLE 4 GENERAL RULES GOVERNING THE USE OF COMMON AREA 4.1 Damage or Vandalism... 7 4.2 Traffic Violations... 7 4.3 Motorized Scooters, Go-Karts, Pocket-bikes, Off-Road Motorcycles and ATV s.... 8 4.4 Parking Violations.... 8 4.5 Littering... 8 4.6 Pets Must be on a Leash... 8 4.7 Barking Dogs or other Loud Noises.... 8 4.8 Sporting/Outdoor Equipment... 9 4.9 Discharging of Firearms... 9 4.10 Path and Trail Rules... 9 ARTICLE 5 GENERAL RULES GOVERNING THE USE OF LOTS... 9 5.1 Maintenance of Lots.... 9 5.2 Garbage Cans and Recycle Bins... 10 5.3 Rental Policy... 10 5.4 Violations of Section 9.1 of the Declaration, Architectural Control... 11 ARTICLE 6 CORRECTIVE ACTIONS PROCESS CHART... 11 6.1 Corrective Actions Process Chart for Property Violations... 11 ARTICLE 7 MISCELLANEOUS... 12 2/10/2014 3:21 PM 2

7.1 Complaints Concerning Violations... 12 7.2 Modification of Rules... 12 7.3 Review of Violation... 12 7.4 Notice and Hearing; Suspension of Rights; Lien Rights.... 7.5 Conflict.... 7.6 Objections and Appeals.... 2/10/2014 3:21 PM 3

CHAPARRAL PINES COMMUNITY ASSOCIATION CONSOLIDATED ASSOCIATION RULES ARTICLE 1 PURPOSE, ORGANIZATION AND FINANCE 1.1 Project Documents. The Chaparral Pines Community Association (the Association ) was established on January 9, 1996, as an Arizona nonprofit corporation for the purpose of providing management, maintenance and care of the Common Area and any other property placed under its jurisdiction. The duties and powers of the Association are defined in the Project Documents, which are as follows: i. Declaration of Covenants, Conditions and Restrictions for Chaparral Pines, as may be amended from time to time (the Declaration or CC&R s); ii. iii. iv. Articles of Incorporation of Chaparral Pines Community Association; Chaparral Pines Community Association Bylaws; Association Rules and Regulations ( Rules ); and v. Design Guidelines. Throughout these Rules capitalized words will have the same meanings as described in Article 1 of the Declaration. Each Owner in Chaparral Pines is provided with a copy of all Project Documents. By taking title to a Lot within Chaparral Pines, an Owner agrees to comply with the provisions of the Project Documents as they pertain to the Owners and Members. These Rules are supplemental to all other Project Documents; Owners are encouraged to read all Project Documents to gain an understanding of how the Association operates and what restrictions are placed upon their property and the Common Area. Each Owner in Chaparral Pines is responsible for all actions of his or her guests or renters while using Chaparral Pines property. Per Section 3.24 of the By-Laws, if any Owner, tenant, employee, guest or invitee of an Owner violates the CC&R s, By-Laws, or Rules, and a fine is imposed, the fine will be assessed to the Owner. If the Owner refuses to comply with the CC&R s, By-Laws, or Rules, the Board may choose to either use self-help or dispute resolution procedures, including lawsuit, to remedy any violation or recovery monetary damages or both. In any such action, to the maximum extent permissible, the Owner responsible for the violation will pay all costs, including reasonable legal fees incurred. Per Section 3.24 of the By-Laws, the failure of the Board to enforce any provision of the Declaration, By-Laws, or any rule shall not be deemed a waiver of the right of the Board to do so thereafter. All violations will be kept for 12 months. If no subsequent violations occur during a twelve month period, the violations will be cleared from the record. 2/10/2014 3:21 PM 4

1.2 Management. The Board of Directors of the Association ( Board ) is responsible for the administration of the Association and is authorized to hire personnel necessary for the daily operation of the Association and its Common Area. The Board will be elected by the Members of the Association. Each Owner of a Lot is a Member of the Association. The Board has hired a property management company (the Managing Agent ) to oversee the daily operation of the Association. The Managing Agent will work closely with the Board to assure that the Association is being operated in a manner that will enhance and preserve the community. The name, address and telephone number of the Managing Agent will be provided to each Owner upon taking title to a Lot. 1.3 Assessments/Dues. The funds necessary to operate the Association and its facilities are provided by the Assessments levied by the Association against each Lot within Chaparral Pines. The Board, subject to the provisions of the Declaration, has the authority to levy (i) Annual Assessments to provide for the operation, maintenance and management of the Association and the Common Area, and (ii) Special Assessments for the cost of any construction, reconstruction, repair or replacement of facilities upon the Common Area. The financial stability of the Association is dependent upon the timely payment of all Assessments. The following rules shall apply to the payment of Assessments: 1st day of each quarter: 15th day of current month: 16th day of second month: 16th day of third month: 1st day of fourth month: Assessment is due and payable to Chaparral Pines Community Association at the address provided by the Managing Agent. If payment is not received at the above address by this date, a $30.00 charge for late payment is automatically assessed (charges for late payment will be applied on every account showing one full assessment due with no notice to Owner). If payment is not received at the above address by this date, a $75.00 charge is assessed and a demand letter is mailed. Transponders are turned off at this time. If payment has not been received within ninety (90) days after its due date, a lien fee is charged (preparation and filing fees charged to the Association) and a lien is filed on the property. The lien will remain on the property until the account is current. If payment has not been received by this date, the account will be turned over to the collection agency. If collection agency is unable to collect through either written 2/10/2014 3:21 PM

When judgment is received from Justice Court: or verbal communications, the account will then be turned over to the Association legal counsel and additional fees to cover the cost of Justice Court filing will be added to the Owner s delinquent account. The amount of fees charged to an Owner for the preparation and filing of Justice Court actions will be the same as the fees charged to the Association by the provider of the services. Any fees incurred in the collection of this matter will be charged to the delinquent Owner. Notwithstanding anything contained herein to the contrary, the Board in its reasonable discretion may pursue any other rights and remedies available to the Association pursuant to the Declaration or under law. These remedies could include personal judgment lawsuits or foreclosure lawsuits. Returned checks: There will be a $25 charge for checks not paid by an Owner s bank. The fiscal year for the Association is the calendar year. The amount of the Annual Assessment will be determined each year by the Board and all Owners will be notified at least thirty days prior to the beginning of the new year. ARTICLE 2 ASSOCIATION PROPERTY GENERAL RULES 2.1 Code of Conduct. Per the Code of Conduct Adopted November 19, 1999 by the Chaparral Pines Board of Directors. i. All persons must conduct themselves in a civil and courteous manner at all times and must not jeopardize or interfere with the rights and privileges of others. ii. iii. iv. Loud, profane, indecent or abusive language is prohibited. Harassment or physical abuse of any person by another is prohibited. No person s actions shall compromise the safety of another. 2.2 Responsibility. Owners are responsible for all activities of their guests, or renters, while on Chaparral Pines property. 2.3 Notices and Advertisements. No notices, advertisements or posters of any kind shall be placed or distributed on Common Areas without the prior written consent of the Board. 2/10/2014 3:21 PM 6

ARTICLE 3 GENERAL RULES GOVERNING THE USE OF LIMITED ACCESS GATES 3.1 Methods of Access. Per the Policy Regarding the Purchase of Transponders adopted July 22, 2010 and effective September 1, 2010, the gated entrance will have two methods of access: i. Automatic access is provided for Owners by the use of an electronic transmitter (transponder). Each vehicle must be registered for transponder access. A transponder must be purchased for each vehicle registered. Lost or damaged transponders may be replaced for a fee. ii. All owners of Dwelling Units (homeowners) are required to purchase a transponder for each vehicle used by that homeowner for the purpose of entering or exiting the property, and each vehicle owned by every person residing with such homeowner for the entering or exiting of the property (this includes Renters). If a homeowner refuses to purchase a transponder, and wants to enter or exit the property at times when the main gate is not manned, a $10 per occurrence fine will be assessed to the Unit. iii. All owners, members and guests without transponders must enter through the main Security gatehouse and register with the Security officer on duty. ARTICLE 4 GENERAL RULES GOVERNING THE USE OF COMMON AREA As stated in the CC&Rs, Section 2.1(c), the Board has the right to adopt rules, regulations or policies regulating the use and enjoyment of the Common Area. 4.1 Damage or Vandalism: Any damage to the common areas of Chaparral Pines including gates, mail clusters, grounds, light posts, dog stations, bridges or roads will result in a $100.00 fine plus the cost of repair or restoration to damaged or defaced property. Nudging the gates open with a vehicle is considered vandalism. Chaparral Pines Community Association will prosecute offenders to the fullest extent of the law. 4.2 Traffic Violations: The Traffic Control Policy (adopted March 18, 2002 and revised April 28, 2011) was adopted to regulate the use of the roads in Chaparral Pines. Violations of this policy result in a written warning for the first offense. The second offense is a $100 fine, the third offense is a $250 fine and the fourth and subsequent offense results in being banned from driving on the roads. 4.21 Examples of Traffic Violations: i. Non-licensed or underage operation of any motor vehicle on Chaparral Pines streets. ii. Speeding iii. Failure to stop at a stop sign All traffic control laws followed within Chaparral Pines are inclusive of Town of Payson and State of Arizona traffic laws. 2/10/2014 3:21 PM 7

4.3 Motorized Scooters, Golf Carts, Go-Karts, Pocket-bikes, Off-Road Motorcycles and ATV s: Operating any motorized vehicle that cannot be licensed for highway travel is strictly prohibited within the community (see Traffic Control Policy, rule #14). All golf carts may be operated within CP and are subject to a safety review prior to operation on the streets. The safety review will be conducted by CP security. Operating of any motorized vehicle is only allowed on paved streets within Chaparral Pines. Violations of this policy result in a written warning for the first offense. The second offense is a $100 fine, the third offense is a $250 fine and the fourth and subsequent offense results in being banned from driving on the roads. This is a major safety concern. 4.4 Parking Violations: As stated in the CC&Rs, Exhibit C Section 2 (b), homeowners and guests may park on driveways and in garages. They may only park on the street during the day. No overnight parking on the streets is allowed. Parking on other areas of your property not designated for parking, or yard parking in not acceptable. There will be a written warning for the first offense, a $25 fine for the second offense, $100 fine for the third offense. The fourth or subsequent offense will result in the vehicle being removed, at the Owners expense, from the property for 30 days. As stated in the CC&R s boats and trailers must be kept within the garage of any Unit. Recreational Vehicles (RV) can be parked outside of the home, in the driveway, for a period of no longer than 24 hours, to allow for loading or unloading and cleaning the RV. 4.5 Littering: Per Exhibit C of the CC&Rs, any noxious or offensive activity which in the reasonable determination of the Board tends to cause embarrassment, discomfort, annoyance, or nuisance to persons using the Common Area or to the occupants of other Units, is prohibited. This would include littering on the property, and/or not cleaning up after your pet. There will be a written warning for the first offense, a $100 fine for the second offense, $250 fine for the third and subsequent offense. 4.6 Pets Must be on a Leash: WHEREAS, pursuant to the Declaration of Covenants, Conditions and Restrictions for Chaparral Pines Article IV Use Restrictions ('Use. Restrictions'), Section 4.2 Authority to Promulgate Use Restrictions and Rules ('Authority'), and the Initial Use Restrictions, Section 2, Restricted Activities ('Restricted Activities'), Chaparral Pines Community Association ('Association') has the authority to modify, cancel, limit, create exceptions to, or expand the Initial Use Restrictions set forth in Exhibit "C". WHEREAS, the Board of Directors of the Association ('Board') finds there is a need to expand Section 2, Paragraph C to further define the limits of household pets within the Association. NOW THEREFORE, IT IS RESOLVED that the following policy is established to define Restricted Activities of the animals within the Association, enforce the Restricted Activities, and remedy any violation of the Restricted Activities, and the same is to be known as the 'Chaparral Pines Animal Control Policy': 1. Pets allowed: A reasonable number of household pets are allowed in a Dwelling Unit. No more than three (3) dogs over six months old are permitted in an enclosure. No animals, including pigs, hogs, donkeys, swine, poultry, wild animals, horses, cattle, sheep, goats or any other type of animal not considered to be a domestic household pet within the ordinary meaning and 2/10/2014 3:21 PM 8

interpretation, may be kept on Property. 2. Animals at Large: No domestic household pet shall be allowed to run at large. Animals are required to wear a physical leash any time they are out of their yard. Electronic leashes will not be allowed in Chaparral Pines. All leashes used must allow the owner to physically restrain the animal if necessary. Any animals found running loose through the Association may be removed from Property via Town of Payson Animal Control. 3. Objectionable Noise: Incessant whining, growling, barking, or any other noise that may disturb owners of other Units shall be considered an objectionable noise and may be considered a violation of this Policy. 4. Breeding of Animals: No breeding of any animals for commercial purposes will be allowed on Property. 5. Endangering the Health or Safety of Residents, Members or Guests: Animals are required to be registered, licensed and inoculated per Town of Payson requirements. Town of Payson Police Department will be notified of any incident regarding any animal harassing or causing injury to a resident, member or guest or any other domestic animals in the Association. 6. Constituting a Nuisance or Inconvenience to the Occupants of other Units: Any animal that causes damage to another unit; disrupts or disturbs neighboring animals; makes occupants uncomfortable when using common areas; is continuously noisy or uncontrollable; is in any way putting off noxious odors that disturb neighboring Units; or is in any other way a nuisance or inconvenience to occupants of other Units as decided by the Board, may be in violation of this Policy. 7. Enclosures: Any structure built to hold household animals outside must be screened from the view of neighboring units and common areas by landscaping or natural vegetation. Any structure must comply with the Architectural Guidelines of Chaparral Pines. No structure may be over 500 square feet in size, and must be of a height comparative to that of the animal being enclosed. Any enclosure must be kept clean, sanitary and reasonably free of refuse, insects and waste at all times. 8. Enforcement: The Association is authorized to enforce this Policy, and, if necessary, take action against individual homeowners to remedy violations. When an incident report is filed, the Association will send the violator a 'courtesy' letter with a reminder about compliance with the Policy. If the problem persists, a 'violation' letter will be sent to the violator and presented to the Board. If the problem continues, the Board will be asked to invoke a fine against the violator. If the problem persists, and the fines go unpaid, the Board may remove the animal from the Property. 2/10/2014 3:21 PM Pets must be cleaned up after as well. Please see Littering Section 4.5. 4.7 Barking Dogs or other Loud Noises: Per Exhibit C of the CC&R s, any activity which emits foul or obnoxious odors outside the Unit or creates noise or other conditions

which tend to disturb the peace or threaten the safety of the occupants of other Units is prohibited. This includes incessant dog barking. Incessant, by definition, is continuing or following without interruption. Section 130.20 (C) 9 regarding Animals of the Town of Payson Code of Ordinances states Keeping any animal or fowl in a manner which causes (i) loud, frequent, raucous, or long continued noise that disturbs the comfort and repose of any person in the vicinity; or (ii) repeated howling, barking, whining, or other utterances that disturb the peace and quiet of any person or deprive any person or persons of the quiet and peaceful enjoyment of their property is prohibited. This also includes extreme noise after Town of Payson quiet hours, which are available on the Town of Payson website. There will be a written warning for the first offense, a $100 fine for the second offense, $250 fine for the third and subsequent offense. 4.8 Sporting/Outdoor Equipment: Must be brought in from the street, sidewalks, and off driveways every night so as not to be visible from the street. There will be a written warning for the first offense, a $25 fine for the second offense, $100 fine for the third and subsequent offense. Basketball hoops that are broken or in otherwise unusable state must be either repaired or disposed of by the homeowner. 4.9 Discharging of Firearms: The discharge of rim-fire or center-fire firearms is prohibited within the community. Violators will be fined up to $500.00 per incident. 4.10 Path and Trail Rules: Path and trail rules were adopted October 22, 1998. Motorized vehicles are prohibited on all hard-surfaced, multi-use paths and wheeled vehicles are prohibited on all soft-surfaced trails. The leash law and litter rules are in effect on all paths and trails. Loud music and/or unsafe usage of the paths and trails is prohibited. Removing, marring, or defacing natural vegetation; picking flowers, cutting vegetation, and digging up plants; harassing, molesting or harming wildlife or wildlife habitat; and removing, destroying, or defacing any signs, benches, or trash receptacles is prohibited. Smoking is prohibited on all paths and trails. ARTICLE 5 GENERAL RULES GOVERNING THE USE OF LOTS 5.1 Maintenance of Property. i. 5.4.1 Seasonal Residents. Each Owner should become familiar with Sections 6.2 of the Declaration. It is each Owner s responsibility to maintain his/her Property in a good and clean condition 365 days a year, even though an Owner may be a seasonal Resident. Seasonal Residents must contract for and assure that maintenance is being performed during absences from Chaparral Pines. ii. 5.4.2 Examples of Violations: a. Overgrown landscaping b. Excessive weeds c. Pine needles on roof/hanging out of gutters d. Home needing re-staining or repainting e. Lot or home falling into disrepair 2/10/2014 3:21 PM 9

iii. 5.4.3 Remedies. Failure to maintain an Owner s Property may result in the Association taking any action available to it under the Declaration, including without limitation, the right to perform the maintenance at the cost of the Owner and the Association levying fines as provided for in Section 7.7 of the Declaration. Homeowners will initially be given 30 days to correct any documented problem. If sufficient corrective action has not commenced within the 30 days, or the Association or Board has not been contacted regarding a schedule of when work will be done, a fine of $50 will be levied, and the Association attorney will be contacted to initiate action to allow access to the property to allow corrective action to be taken by the Association. All legal fees incurred will be billed to the property owner. According to section 7.7 of the Chaparral Pines CC&Rs, the Association can use self-help options and hire a contractor to do the work. If this occurs, the Association has the right to assess the Unit for the cost associated with hiring a contractor, or any other fees associated with rectifying the situation. Examples of these instances are houses in severe need of paint/siding, gutter or roof repair, or junk kept in plain view from the street and piles of rock strewn about outside of and along fences, along with all applicable legal fees. 5.2 Garbage Cans and Recycle Bins: When it is not pickup day these items must be kept behind a screened area or in the garage. They must not be visible from common areas, the golf course, or neighboring units. For each container left out more than 48 hours past the pickup day the homeowner will be issued a written warning for the first offense and then fined $25.00 per occurrence for each violation thereafter. To assist part-time resident Owners, the Security team will place the can behind a screened area, if a screened area is available. 5.3 Rental Policy: The Lease/Rent Policy adopted May 4, 1998 (and amended May 26, 2010) established that no lease or rental of a property could be less than ninety (90) days in duration. Properties may only be leased in their entirety. No fractional leases or time shares are permitted. Owner must provide the Association with a copy of the lease agreement, as well as documentation that they have provided their renters with a copy of the CC&R s, By- Laws, and Association Policies. This documentation must be provided no later than 10 days after the lease or rental agreement has been executed. Renters are not allowed to use Club facilities, based on the Membership Plan and Club Membership Rules. Owners may choose to purchase transponders for their renters, or provide permission for the renter to purchase their own transponder, only for the duration of the lease. Any violation of the CC&R s, By-Laws, Design Guidelines or Board policies that may result in a fine will be charged to the Owner s Association account. Any owner who chooses to violate the 90-day rule and uses his or her home for a vacation rental property will be subject to fines. Each Internet, print or any other type of advertising for a short-term lease or rental within the community shall be deemed proof of a violation. It shall be the owner s responsibility to provide the Board with proof that he or she is not in violation. Proof will consist of 1) a signed lease or rental agreement covering the period in question that explicitly states a lease or rental term of no less than ninety (90) days; and 2) a signed, notarized declaration from the tenant or tenants attesting to the authenticity and accuracy of that signed lease or rental agreement. 2/10/2014 3:21 PM 10

Fines are as follows: First offense: Owner shall receive a general warning notice outlining the nature of the alleged violation, requesting immediate correction and/or remedy of said violation. Second offense: $1500.00, third offense: $3000.00, fourth offense: $4000.00, fifth and subsequent offenses: $5000.00 per each occurrence. If a violation of the Association s ninety (90) day minimum occurs, and if within twenty four (24) months of such violation the same owner has been cited for one or more additional violations of the Lease/Rent Policy, the Association shall give the owner written notice of the current violation and an opportunity to show cause why a monetary penalty in accordance with the above schedule should not be levied. The monetary penalties shall be imposed per violation (not per month). In addition, the Association may exercise any and all other remedies available to it, including the withholding of transponder access to the gates and legal action for injunctive relief. 5.4 Violations of Section 9.1 of the Declaration, Architectural Control. The Board shall levy a fine of five hundred dollars ($500) against an Owner for the failure by such Owner, or Lessee of such Owner s Lot, to obtain written approval from the Architectural Review Committee prior to constructing or installing an Improvement that would be Visible From Neighboring Property, or for the failure to comply with any other provision of Section 9.1 of the Declaration or the Design Guidelines. An Owner may submit a request for approval to the Architectural Review Committee after the Board levies the fine, but the request will not be considered until the earlier of (i) payment of the fine by the Owner, or (ii) determination by the Board that the fine should not be assessed. The failure by an Owner to remove or satisfactorily correct an Improvement for which the Architectural Review Committee has disapproved may result in the Association taking legal action to correct the violation. In any such legal action, the Association will seek to recover all attorneys fees, costs and expenses resulting from the action pursuant to the provisions of the Declaration and pursuant to Arizona law. In addition, the Board may levy an additional fine per day for each day an Owner fails to comply with instructions from the Board or Architectural Review Committee with respect to removal or correction of an Improvement installed without written approval. ARTICLE 6 CORRECTIVE ACTIONS PROCESS CHART FOR PROPERTY VIOLATIONS 6.1 Corrective Actions Process Chart for Property Violations. Violations relative to property issues will be notified and corrected in the following manner: i. Event Occurs A complaint is filed by either an Owner, Board member, Security or Property Manager. ii. Owner is Notified Within three (3) days of the reported violation, a letter is sent to the Owner notifying of the violation and giving thirty (30) days to comply. iii. Second Notice to Owner If Owner fails to comply in first thirty (30) days, a demand notice is sent with a second thirty (30) day deadline. 2/10/2014 3:21 PM 11

iv. Violation is sent to Attorney If Owner fails to comply with the demand notice, the violation is sent to the Association attorney. The attorney will be asked to verify the course of action the Board has requested and begin the process of gaining authority for the Association to enter onto the property to rectify the problem. Attorney will have thirty (30) days to process this request during the Final Demand Notice. The Owner will be responsible for any reasonable legal fees incurred by the Association. v. Final Demand Notice At the same time the violation is sent to the Attorney, a Final Demand Notice will be sent to the Owner giving a final thirty (30) days for the Owner to comply with the CC&R s. Owner will be notified, at this time, that non-compliance will result in the Association taking action and assessing the Unit one week after the thirty (30) day deadline. vi. Association takes Action The Association will hire a contractor to provide the necessary services to bring the property into compliance. All fees or charges incurred will be the responsibility of the Owner, and will be assessed to the Unit. This includes all contractor fees and any reasonable legal fees incurred by the Association. vii. File Lien A lien will be filed on the property for any costs the Association incurred in remedying the violation, including any fines levied. ARTICLE 7 MISCELLANEOUS 7.1 Complaints Concerning Violations. An Owner may report an alleged violation to the Association by a telephone call to the Managing Agent or Security, or they may email the property manager. If an email is sent of a violation, a digital photo must be attached with the email. The Owner must be able to cite a specific CC&R violation when bringing it to the attention of the Association. The Owner must also provide the street address of the lot in violation. Only actual CC&R violations will be addressed. Owners are asked to do the proper research before issuing complaints. A copy of the CC&R s is available at www.chaparralpineshoa.com. 7.2 Modification of Rules. These Rules may be modified from time to time as may be deemed necessary in the sole discretion of the Board of the Chaparral Pines Community Association. Please be aware that some CC&R restrictions have been overridden by the Arizona Revised Statutes. Some CC&R stipulations are no longer enforceable due to changes in the legislation. An example of one of these changes is: 7.2.1 For Sale or For Rent Signs. For Sale and For Rent signs are allowed on the property. The rules state that a single sign, professionally made, may be displayed. The sign can be no larger than 18x24 with a single rider. The color and content of the sign can no longer be regulated by the Association. 7.3 Review of Violation. Documentation of any actual violation from an Owner will be reviewed by the Property Manager and if necessary the entire Board. ARC violations will be addressed by the ARC once the Property Manager reviews the nature of the 2/10/2014 3:21 PM 12

complaint. Once either group has confirmed a violation in committee, the Process Chart for Enforcement will be followed. 7.4 Notice and Hearing; Suspension of Rights; Lien Rights. No fines will be assessed without notice and an opportunity to be heard. Article 3.24 of the Bylaws sets forth the notice and hearing procedures for fines. Any fine for which an Owner has waived the right to be heard, or any fine affirmed by the Board after hearing shall be paid in accordance with Article 3.24 of the Bylaws. In addition to levying fines as penalties for infractions, the Association also may exercise any other remedy available pursuant to the Declaration or pursuant to Arizona law. 7.5 Conflict. In the event of any conflict between these Rules and the Declaration, the Declaration shall control. In the event of any conflict between these Rules and the Bylaws, the Bylaws shall control. 7.6 Objections and Appeals. Objections and Appeals will be heard by the Chaparral Pines Association Board of Directors. It is important to note that because something has not been enforced by previous Board s, this does not make a homeowner exempt from an CC&R violation enforcement. Section 3.24 of the By-Laws states The failure of the Board to enforce any provision of the Declaration, By-Laws, or any rule shall not be deemed a waiver of the right of the Board to do so thereafter. 2/10/2014 3:21 PM 13

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